Personal Bankruptcy in Ontario, California

If you are like hundreds of other Ontario residents facing home foreclosure or unable to pay your bills due to a death, high credit card bills, an expected medical crisis or a divorce, you may be looking for a financial solution. Bankruptcy has been created by the federal government for individuals just like you who simply need a fresh financial start and have exhausted all other possible solutions.

Filing bankruptcy in Ontario is a very serious decision and should not be done without first contacting an Ontario bankruptcy lawyer. If filing bankruptcy is right for you, you may be able to file Chapter 7 bankruptcy in Ontario and discharge either all or a part of your personal debt. If you do not qualify for Chapter 7 bankruptcy, you may be able to file Chapter 13 bankruptcy. Filing Chapter 13 bankruptcy may allow you to restructure your debt with more favorable repayment terms and repay your creditors over a three to five year time period.

Filing Chapter 7 Bankruptcy in Ontario

One of the simplest, least expensive and quickest bankruptcy methods to discharge personal debt is through Chapter 7 bankruptcy. Recent changes to bankruptcy law have made filing Chapter 7 bankruptcy more difficult and an Ontario bankruptcy attorney should be contacted to verify a filer’s eligibility. Filing Chapter 7 bankruptcy in Ontario will allow the filer’s non-exempt assets to be sold and the proceeds from the sale to be used to repay the filer’s creditors. Certain assets are considered exempt and are not part of the liquidation process.

The first step to file Chapter 7 bankruptcy in Ontario is to contact an Ontario bankruptcy attorney who can file the bankruptcy petition. Exempt assets, non-exempt assets, creditor information, and filer’s income are all included in the petition. A review of the bankruptcy petition will be done by the bankruptcy court. A trustee is assigned to sell the filer’s assets and a meeting is held for the creditors (341 Creditor’s Meeting). For most Chapter 7 bankruptcy cases the filer’s debts and the bankruptcy proceedings will be concluded within four to six months.

Filing Chapter 13 Bankruptcy in Ontario

Chapter 13 bankruptcy in Ontario differs from Chapter 7 bankruptcy. Chapter 13 bankruptcy is not a liquidation of assets but rather a reorganization of creditor payments. The filer is allowed to work with their Ontario bankruptcy lawyer to create a new bankruptcy repayment plan. The bankruptcy repayment plan is a three to five year debt repayment schedule and must be approved by the bankruptcy court. Only filers who have a steady income can file Chapter 13 bankruptcy in Ontario. A filer’s unsecured debt can not exceed $269,250 and their secured debt can not exceed $807,750.

Personal Debts Not Eliminated By Filing Personal Bankruptcy

Non-dischargeable debts are not discharged by filing personal bankruptcy. Non-dischargeable debts are outlined in federal bankruptcy laws and do not vary by state. The following debts are not discharged by filing bankruptcy in Ontario, California:

• Most back taxes
• Child support and alimony payments
• Certain student loans
• Purchases of luxury items within ninety days of filing personal bankruptcy in Ontario
• Fines owed to federal or California government agencies
• Debts generated from fraudulent activity
• Recent cash advances of $825 within 70 days of filing personal bankruptcy